CAIRO: Orascom Telecom fell after reports its Algerian unit would be blocked from importing new mobile phone equipment, weighing on Egypt’s benchmark index, traders said.
If faced with an import freeze, Djezzy, the biggest single source of revenue for Orascom, will see its sales hit during the upcoming Ramadan and Eid seasons, a traditionally busy period for mobile phone operators, traders say.
"This news is extremely negative. An import block at this peak season is a disaster for Orascom’s third and fourth quarter results," said one trader, who did not want to be named.
Orascom fell 2.7 percent, after trading in positive territory earlier in the session.
"There is always negative news coming out of Algeria," Hashem Ghoneim of Pyramids Capital said.
Pioneers Holdings dropped 3 percent and Egyptian Resorts 2.5 percent.
Talaat Moustafa lost 3.6 percent, its third day of declines since a court-assigned body recommended scrapping a land contract between the developer and Egypt’s housing ministry.
The benchmark index closed 0.2 percent higher at 6,317 points.
